Competitive Strength Analysis
Table of Content
Amazon and Walmart are two big giants when it comes to sale and market share of their products; companies sell a large number of products both are competing in a large number of products as they provide number of products ranging from grocery, books, electronics and another number of products they are competing in their business domains. As 2018 started, Walmart has to pay attention to its future as Amazon captured the great help place of Walmart as the most valuable retailer company in the world. Amazon reported growth ten times in the past decade, and Walmart only shows a 20% growth in sales compared to Amazon. Amazon recently acquired Whole Foods for $13 billion; this shows that Amazon is moving to other offline businesses aggressively, which is a threat to Walmart’s most significant business of grocery.
Walmart is putting efforts to make their way as Walmart bought Jet.com for $3 billion back in 2016, and their US eCommerce revenues show growth as they made $11.5 billion sales through an online website, but still, Walmart is far behind than Amazon. Therefore, Amazon is making more money than Walmart, as sales levels of Amazon are higher than Walmart. Walmart is finding ways to expand in new horizons; Walmart reported profits three times Higher than amazon, but Amazon new buying of Wholefoods making it necessary for Walmart to think aggressively as amazon is targeting its share in the grocery sector.
Walmart is introducing same-day deliveries, and amazon is already doing that in several states, but Walmart is putting effort into initially to introduce it several in several countries. This paper will discuss Walmart’s strategies to have a competitive advantage over amazon by analyzing different aspects of financial, cultural, and strategic related to Walmart.
Walmart, compared to Amazon, is less diversified as Amazon has several new tech devices in the market and other businesses, which can be a threat. Walmart has stores in 28 countries, which, as an opportunity, can be exploited to diversify its business and have a competitive advantage over its most significant competitor Amazon.